1. Field of the Invention
The present invention relates to voice analysis in general and to a method and apparatus for fraud detection in particular.
2. Discussion of the Related Art
Acts of fraud are occurring in ever growing numbers and are becoming a serious problem, harming innocent people, services or goods suppliers, public safety personnel, and credit companies. Fraud and fraud attempts, including theft identities occur in all sectors such as financial institutes, public safety services, insurance or the like. In financial markets, significant harm is created by direct financial loss due to lost goods, lost working hours and expenses on one hand, and distress, shame, credit loss and inconvenience on the other hand. In the public safety domain, frauds can harass, but can also danger life as well as property. Over 9 million people became victims of identity theft in the year 2004 in the United States alone. Common identity theft actions include using false identity when consuming phone or wireless services, using a stolen name, date of birth, or social security number to open a new credit card account, and opening a checking account under a stolen identity. Identity thefts account for 3.23 millions cases per year with an average damage of USD10,200 per victim. Around 60% of all fraud actions involving existing accounts and credit cards take one week to over six months to be discovered. This long time frame, which is mainly due to the long billing cycle, enables perpetrators to commit multiple fraud actions before suspicion arises. Currently available credit card fraud detection and prevention systems are based on: early alert, when the card holder is aware of the identity theft; usage of mutual repository database of suspects or credit card numbers; and noticing transactions which are incompatible with the card holder's profile, in terms of time, location, purchased goods, etc. However, these methods are of little use when no alert of stolen identity is available, such as when a stolen identity is used for opening a new account or obtaining a new credit card.
There is therefore a need for a novel method and apparatus that in addition to the currently available methods and systems will reduce the number of fraud actions in general and identity thefts in particular. The method and system should also be able to shorten the time it takes to expose additional fraud actions and fraud attempts, and preferably to even uncover them before the interaction is over.